These big guys are struggling with expansion in Sth Africa Gefi due to the bottlenecking logistics issues,primarily Transnet.Transnet simply hasnt spend the money on upgrading rail links with Richards bay that was required years ago to take advantage of the upgrades at Richards Bay.
Most of what BHP is selling off is exploration rights.But Anglo has a couple of very interesting in-production jobbies that might be worth a look.One of them in particular,Kleikopje,fits the mine profile of what CCC are looking to run in their projects at roughly 50:50 export/domestic.
Continental seem to like to run with this production profile as they probably think it brings incentives for the Sth Afr power industry and the DMR, to look kindly on them, as it assists Eskom with their raw material issues and this may just get them brownie points in their hunt for more logitics allocation.
Another reason BHP/Rio are looking to sell non-core assets is they see Mozambique as a better bet as they can spend up big and probably upgrade the local Mozabican rail or even own their own logistics.
The Sth Afr Goverment has also been keen to see some of these BHP/Rio/Anglo assets divested to larger BBBEE companies for quicker development.
I think thats about it Gefi although there are probably more reasons behind the sell-off.
d.
CCC Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
